SHORT TERM: choppy early then a rally, DOW +38
Overnight the Asian markets lost 0.5%. Europe opened lower and lost 0.1%. US index futures were lower overnight, and at 8:00 FED vice chair Yellen’s speech was released: http://www.federalreserve.gov/newsevents/speech/yellen20130302a.htm. The market opened lower at SPX 1514, dipped to 1513 in the opening minutes, then rallied to 1519 by 11:30. The SPX had closed at 1518 on friday. The market then dropped to SPX 1512 by 12:30, only to turn around and rally again. 3:00 FED governor Powell’s speech: http://www.federalreserve.gov/newsevents/speech/powell20130304a.htm. The market continued higher into the close, ending the day at SPX 1525.
For the day the SPX/DOW were +0.35%, and the NDX/NAZ were +0.40%. Bonds lost 4 ticks, Crude dropped 60 cents, Gold slipped $2, and the USD was lower. Medium term support remains jumps to the 1523 and 1499 pivots, with resistance at the 1552 and 1576 pivots. Tomorrow: ISM services at 10:00.
The market opened lower, then bounced around between SPX 1512 and 1519 before rallying into the close. The SPX ended the day at the recent 1525 high. Despite, currently, 65% of the foreign markets in downtrends the US market continues to try to move higher. Recent highs have been SPX 1531, 1526, 1525 and now 1525 again. Minute waves i and ii, at SPX 1525 and 1501, remain. And, the market is back to SPX 1525, suggesting a Minute iii may still be underway. Nevertheless, we remain cautious medium term on this market raising our potential trend reversal level to SPX 1502.
Short term support is now at the 1523 and 1499 pivots, with resistance at the 1552 and 1576 pivots. Short term momentum ended the day overbought. The short term OEW charts vacillated again today and ended positive with the swing level at SPX 1514. Choppy market. Best to your trading!
MEDIUM TERM: uptrend still trying to rise
LONG TERM: bull market